Clifford Chance

Another step closer: Draft EU Directive harmonising certain aspects of insolvency law

23 June 2025

On 12 June 2025, the European Council issued a press release: EU insolvency law: Member States agree position on bringing national insolvency standards closer (see the press release). The harmonisation of insolvency laws forms part of the core Capital Markets Union legislation, across EU Member States.

The draft directive is expected to:

• Boost cross-border investment.
• Reduce the cost of capital.
• Make it easier for investors to assess risks.

Since the initial publication of the draft directive on 7 December 2022, several changes have been made following feedback from a wide range of stakeholders, including Clifford Chance. Our contributions highlighted areas needing additional clarity, and it is encouraging to see that some of these key recommendations have been incorporated.

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